The Federal Government has decided to maintain current petroleum prices for the next fortnight while planning to redirect potential consumer relief toward reducing electricity tariffs.

Despite keeping retail prices unchanged, the government has simultaneously increased the petroleum levy on both petrol and diesel by Rs. 10 per liter, raising it from Rs. 60 to Rs. 70 per liter with immediate effect. This move effectively absorbs what could have been a price reduction for consumers at the pump.

Sources added that the IMF had specifically requested a Rs. 10 per liter increase in the petroleum levy as part of its loan program requirements.

According to a notification issued by the Finance Division on Saturday, all major petroleum products will continue to sell at existing rates from March 16, 2025. High-Speed Diesel (HSD) will remain priced at Rs. 258.64 per liter, while Motor Spirit (MS-Petrol 92 RON) will continue at Rs. 255.63 per liter. Similarly, Superior Kerosene Oil (SKO) and Light Diesel Oil (LDO) will stay at Rs. 168.12 and Rs. 153.34 per liter, respectively.

The Prime Minister’s Office explained the strategy in a statement released Saturday, noting that the federal government intends to “pass on the full financial benefit to the public through adjustments in power tariffs” rather than through fuel prices. This approach suggests the administration is prioritizing electricity bill relief over petroleum price reductions.

Industry analysts view this decision as part of the government’s broader fiscal management strategy, balancing revenue needs with public relief measures while working to meet conditions set by international lenders.